Northern Gold Mining Inc. (“Northern Gold” or “the Company”) announces the results of an updated resource estimate for its Garrcon Deposit, including the first Measured resource for the deposit. This NI 43-101 report, independently prepared by A.C.A. Howe International Limited (“Howe”) of Toronto, Ontario, determined that at the Garrcon Gold Deposit “Northern Gold’s exploration drilling programs from 2009 to 2011 have confirmed a significant gold resource and have been successful in (a) adding metal content (ounces) and (b) upgrading Inferred mineral resources to the Indicated category and the Indicated mineral resources to the Measured category.” Using a cut-off grade of 0.1 g/tonne gold for mineralized zone interpretation, Howe outlined a mineralized zone that is nearly vertical, 1,225 meters long, up to 650 meters deep and 300 meters wide (on average). Howe concludes that the property merits the expenditure of additional funds to continue expanding, delineating, and developing the resource, as well as the implementation of detailed metallurgical test work that can be used in any future project feasibility study. The full NI 43-101 Technical Report will be filed on SEDAR within 45 days.

“Northern Gold continues to progress with its plans to develop a producing gold mine on its Garrison property. This latest NI 43-101 resource update on the Garrcon deposit provides our first Measured Resource. The total NI 43-101 mineral resources for the Garrison Gold Property includes the Garrcon (updated here) and the Jonpol Deposit (unchanged since the previous Technical Report filed on SEDAR) are now 604,000 ounces of gold Measured, 731,000 ounces of gold Indicated, and 614,000 ounces of gold inferred. This illustrates the steady increase in size and quality in response to our ongoing drilling and justifies our continued faith in the project.” said Martin Shefsky, President and CEO of Northern Gold Mining. “Northern Gold will continue its exploration program, including both in-filling and step-out drilling, as the deposit remains open to the North, East, West and at depth (the South side being bounded by the Destor-Porcupine fault). In addition the company is focusing resources to prepare a feasibility report as its next step towards developing the property for production.”

Garrcon Deposit Mineral Resources

For this NI 43-101 resource update Howe retained the block model cut-off grade of 0.3 g/tonne. Based on Howe’s statistical review (1,174 measurements) of ongoing specific gravity (SG) testing by Northern Gold, the average SG was increased slightly from 2.73 g/cm3 to 2.79 g/cm3for the mineralized resource blocks. The new drilling (both in-fill and step-out) confirmed the uniformity of the mineralization, with a very strongly correlated variogram at the same optimized 25 meter drill hole spacing for Measured resources and 40 meter drill hole spacing for Indicated resources as the two previous technical reports on the Garrcon Deposit (SEDAR filed November 5, 2010 and August 8, 2011). The resource model is anisotropic, with the principal direction along strike, the secondary direction vertical and tertiary direction perpendicular to strike. The more widely spaced step-out holes on the east end of the model have a lower average block model grade.

With each successive resource update the quality of the resource has increased (inferred moved to indicated or measured), and the block model average grade has also increased.

The Technical Report identifies estimates and summarizes the Garrcon Deposit resources above and below the 200 meter elevation for each Mineral Resource category. These resources are shown below in Table 1

1. Cut-off grade for mineralised zone interpretation was 0.1 g/tonne.
2. Block cut-off grade for defining Mineral Resources was 0.3 g/tonne.
3. No top-cut grade was used.
4. Gold price was $US 1500 per troy ounce.
5. Zones extended up to 100 metres down-dip from the last intercept. Along strike, zones extended halfway to the next cross-section.
6. Minimum width was 5 metres, though in no place was the zone that narrow.
7. Non-diluted.
8. No mineral reserves were identified. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
9. Resource estimate prepared by Doug Roy, M.A.Sc., P.Eng., ACA Howe International Limited.
10. A specific gravity (bulk density) value of 2.79 was applied to all blocks – a representative value based on 1,174 measurements.
11. Ordinary block kriging (“OBK”) was used for estimating block grades.
12. Measured mineral resources were defined where three holes were used to estimate block grades and the average distance to samples was 25 metres or less. Indicated mineral resources were defined where three holes were used to estimate block grades and the average distance to samples was 40 metres or less (based on variography).
13. The volume/tonnes of historical underground exploration workings have not been subtracted from this mineral resource estimate – the amount would not be significant compared with the volume/tonnes of mineral resource.

Block Model Cross Sections and Level Sections that provide additional details about this updated resource can be viewed on the Company’s website by clicking on either of the following links:

Howe also includes three tables in its report that illustrate the variations in tonnes, grade and ounces contained within the Garrcon Deposit mineralized zone at various cutoff grades, both above and below the block cutoff of 0.3 g/t gold used for this resource calculation.

Mineral resources are not mineral reserves and by definition do not demonstrate economic viability (a Feasibility report is required to upgrade the mineral resource to a mineral reserve). There is no certainty that all or any part of the mineral resources will be converted into mineral reserves.

Howe’s deposit model was extended to the east, to the north and to depth from the previous resource estimate. Since the last technical report, 100 holes totaling 35,491 meters have been added to the Garrcon Deposit. The number of assays has nearly doubled with 30,066 one-meter-regularized assays being added to the Garrcon database. This deposit model continued to identify a broad zone of mineralization that extends over an east-west distance of 1225 meters, which remains open to the east, to the west, to the north and to depth. The resource width varies but is approximately 300+ meters wide. The deposit is bounded on the south by the Destor-Porcupine fault system. Both contact zones are nearly vertical, with a very slight dip to the south.

The Howe model is constrained by the interpreted geology. A portion of the Green Zone (see Northern Gold’s press releases dated April 3, 2012 and March 2, 2012), which is located on the north side of the north bounding ultramafics (vertically dipping) was modeled as a separate domain. The Green Zone is a new area of mineralization that was not included in previous technical reports. Because it is bounded to the south by the ultramafics this area was constrained by these ultramafics in the Howe deposit model.

Howe Recommendations

The previous mineral resource update report (SEDAR filed August 8, 2011) included a Preliminary Economic Assessment (PEA). That PEA is only associated with that report and is NOT applicable to this resource update.

However, as a part of that PEA, Howe had prepared a list of recommendations for the overall project, which Northern Gold believes are still applicable. As a part of its ongoing strategic plan to bring the Garrison property into production, Northern Gold continues to incorporate Howes recommendations to further refine estimates of costs, recoveries, engineering and mine design to facilitate the development of a Feasibility Study to support development of the Garrison Property gold mine.

* Continue the advanced exploration permitting currently in progress to be followed by the work necessary for operational permitting.
* Expand the permitting process to include potential mill sites, heap leach pads and tailings management areas using claims recently acquired by Northern.
* Continue and expand the current drilling program to:
* Implement and complete a detailed metallurgical test work program to better define the optimal flow sheet design for the mill. Including, if needed, bulk sampling and pilot plant testing.
* Implement and complete a metallurgical test work program to determine heap leach recovery rates and percentages for the Deposit, including, if needed, long term column tests.
* Continue testing the deposit for any potential Acid Rock Drainage (ARD) and confirmation of the relatively high calcium content which is expected to neutralize any ARD potential.
* Initiate a program of structural mapping.
* Initiate a program to determine rock strengths for pit wall stability.

Northern Gold’s ongoing exploration work continues to implement Howe’s recommendations as illustrated by the following bullet points:

* Northern doubled the drill rigs last fall to increase the rate at which resources are upgraded, delineated and discovered.
* Northern continues the infill-drilling program to improve the quality of existing resources.
* Northern’s doubling of the drill rigs has increased the infill drilling rate to speed up the upgrading of resources and the delineation of additional resources within the expanding resource footprint as identified by Howe in this latest technical report.
* Northern continues to perform step out drilling beyond the current resource footprint to test meta-sediment outcrops and newly stripped meta-sediments hosting stockwork veining with anomalous gold mineralization.

Garrcon Deposit Opportunities

With each successive technical report the estimated resource quality has increased (previous Inferred resources moved to Indicated or Measured), while the average block model grade continues to increase slightly. The resource footprint, as defined by Howe, remains open to additional step-out drilling to the east, west, north and at depth.

Drilling through what had appeared to be the northern boundary of the Garrcon Deposit mineralization, an ultramafic body, now shows gold mineralization occurring on the north side of this barren ultramafic body. Included in this resource update is the Green Zone, a constrained mineralized domain to the north of the ultramafic body. What is not included in this model is the area on the northwestern side of new resource model (area between this resource footprint and the JP East zone, see Northern Gold press release dated April 3, 2012). The full extent of this mineralization is not yet known however, it appears to significantly reduce the occurrence of un- mineralized rock between the Garrcon deposit and the eastern extension of the Jonpol mineralized zone (see technical report filed on SEDAR date October 21, 2009).

The Garrcon mineral resource update information presented in this release has been reviewed and approved by Mr. Ian Trinder, M.Sc, P.Geo., and Mr. Doug Roy, M.A.Sc., P.Eng., of A.C.A. Howe International Ltd. or Toronto, Ontario. Mr. Roy and Mr. Trinder are Independent Qualified Persons as defined under NI 43-101 regulations.

About Northern Gold Mining Inc.: Northern Gold is a TSX-V listed, publicly traded junior resource company based in Toronto, Ontario, dedicated to the discovery and development of high value mineral deposits in the proven mining camps of Kirkland Lake and Timmins in Northeastern Ontario. Northern Gold is focused on developing two advanced stage gold deposits on its 100% owned Garrison Gold Property. In addition to the advanced stage Jonpol and Garrcon Gold Deposits, both of which have independent NI 43-101 compliant mineral resource estimates prepared by A.C.A. Howe International Limited (in Technical Reports posted on SEDAR October 21, 2009, November 5, 2010 and August 8, 2011). A Preliminary Economic Assessment is included in the Technical Report posted to SEDAR August 8, 2011. The property hosts several other gold mineralized showings including the less advanced 903 gold mineralized area. The Garrison Gold Property has historical mining infrastructure at both the Jonpol and Garrcon Deposits, and currently producing mines are located near the property.

The technical aspects of this press release have been reviewed and approved by Michael Gross M.S., P. Geo., and Vice-President Exploration for Northern Gold, who is the “Qualified Person” as defined by NI 43-101 for this project.

CAUTIONARY STATEMENT: This News Release includes certain “forward-looking statements.” These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company’s mineral properties, and the Company’s financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company’s forward – looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Hey, what’s happening with Extorre? Is it hit by resource nationalism or what? It’s $4 a share.

On May 17, 2012 at 7:49 pm,John W. Robertsonsays:

test comment only

On August 25, 2012 at 12:30 pm,Rakanepesays:

really. I thought I still nocited a slight delay in return cargo. I will confirm it ASAP.Update: The slight delay of return cargo exist now regardless of whether you do the 7% more mineral trick or not. So you can say it is patched now.